ALJDEC - Licensing

2024A-02086-RFA-LS-ROC · Registrar of Contractors · 2025-03-20

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

Joseph Pitz,

COMPLAINANT

v.

Kustum Digz LLC

DBA: El Torna Hauling Service

License No. ROC 332036,

RESPONDENT

No. 2024A-02086-RFA-LS-ROC

ADMINISTRATIVE LAW JUDGE DECISION

HEARING: March 5, 2025

APPEARANCES: Complainant Joseph Pitz appeared via Google Meet on his own behalf. Arizona Assistant Attorney General, Mona Baskin appeared via Google Meet on behalf of the Registrar of Contractors.

ADMINISTRATIVE LAW JUDGE: Adam D. Stone

EXHIBITS ADMITTED INTO EVIDENCE: Registrar of Contractors Exhibits 1-10 were admitted into evidence.

_____________________________________________________________________

FINDINGS OF FACT

The Arizona Registrar of Contractors (Registrar) issued License No. 332036 to Respondent Kustum Digz LLC.

On or about February 21, 2024, the Registrar received a Complaint against Respondent from Complainant alleging poor work with respect to a swimming pool and hardscaping project at his primary residence.

As a result of the workmanship complaint, on November 29, 2023, the Registrar issued a Citation against Respondent charging possible violations of A.R.S. § 32-1154(A)(1); A.R.S. § 32-1154(A)(2)(b); A.R.S. § 32-1154(A)(3), namely A.A.C. R4-9-108(a) and (b), A.R.S. § 32-1154(A)(12) - A.R.S. § 32-1158 and § 32-1158.01; A.R.S. § 32-1154(A)(16); and A.R.S. § 32-1154(A)(22).

Respondent failed to file a Response and on April 30, 2024, the Registrar issued a Final Administrative Decision and Order (Default), ordering that Respondent’s license be suspended for 10 days.

Complainant then filed a claim with the Residential Contractors’ Recovery Fund (Fund) to recover $30,000.00 on or about June 25, 2024.

The Registrar issued a Notice of Administrative Award on December 20, 2024, finding that Complainant’s actual damages were $30,000.00. Respondent timely requested a hearing on or about January 6, 2025. Complainant did not contest the amount of the administrative payout. The Registrar referred the matter to the Office of Administrative Hearings (OAH) for an evidentiary hearing.

The Notice of Hearing was issued on February 4, 2025 and mailed and e-mailed to Respondent’s addresses of record. The Office of Administrative Hearings also issued an Order on February 21, 2025, setting this matter via Google Meet, and was sent to the parties via e-mail. The copy of the Notice of Hearing that the Registrar mailed to Respondent at its address of record was reasonable and Respondent is deemed to have received notice of the hearing.

Hearing was held on March 5, 2025. Respondent did not request to appear telephonically and did not request that the hearing be continued. Although the start of the hearing was delayed 20 minutes, Respondent did not appear through an authorized member, employee, or attorney. Consequently, Respondent did not present any evidence to defend its license.

CONCLUSIONS OF LAW

This matter lies within the Registrar’s jurisdiction.

A.R.S. § 32-1132.01(B)(1) provides that “[a]n award from the residential contractors’ recovery fund may not exceed the actual damages suffered by the claimant as a direct result of a contractor’s violation. Actual damages: 1. May not exceed an amount necessary to complete or repair a residential structure or appurtenance within residential property lines.”

Respondent bears the burden of proof to establish that the proposed payout from the Fund is incorrect by a preponderance of the evidence.

Because Respondent requested the hearing and failed to appear, it has not met its burden. Therefore, the tribunal affirms the payout as delineated in the Notice of Administrative Award.

RECOMMENDED ORDER

Based on the foregoing, it is recommended that on the effective date of the Registrar’s final order, Complainant receive a payout from the Residential Contractors’ Recovery Fund in the amount of $30,000.00.

Pursuant to A.R.S. § 41-1092.08(I), the licensee may accept the Administrative Law Judge Decision by advising the Office of Administrative Hearings in writing not more than ten (10) days after receiving the decision. If the licensee accepts the Administrative Law Judge Decision, the decision shall be certified as the final decision by the Office of Administrative Hearings.

In the event of certification of the Administrative Law Judge Decision by the Director of the Office of Administrative Hearings, the effective date of the Order will be forty (40) days from the date of that certification.

Done this day, March 20, 2025.

/s/ Adam D. Stone

Administrative Law Judge

Transmitted by either mail, e-mail, or facsimile to:

Tom Cole, Director

Registrar of Contractors

Kustum Digz LLC

[email redacted]

Joseph Pitz

[email redacted]

Mona Baskin Esq.

Office of the Attorney General

[email redacted]

By: OAH Staff